PM Modi made the announcement for the ambitious economic corridor on the sidelines of the G20 Summit on Saturday.
New Delhi: A Memorandum of Understanding (MoU) was Saturday inked between India, USA, UAE, Saudi Arabia, France, Germany, Italy and the European Union to establish the historic India-Middle East-Europe Economic Corridor aimed at boosting economic development via enhanced connectivity in these regions.
“The corridor will encourage and provide impetus to economic development through enhanced connectivity and economic integration between Asia, West Asia, the Middle East and Europe”, news agency ANI reported, citing sources.
As per the report, the India-Middle East-Europe Economic Corridor will consist of two separate corridors, the East corridor connecting India to West Asia/Middle East and the Northern corridor connecting West Asia/Middle East to Europe.
Economic corridor to boost economy via enhanced connectivity
The mammoth undertaking will include a railway line, which upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes enhancing transhipment of goods and services between South East Asia through India to West Asia/Middle East Europe.
Citing sources, the report said that India will reap significant gains from the development of the corridor as it will place the country firmly on the route of trade flows from South East Asia to the Gulf, West Asia and Europe, thus boosting the strategic and economic advantage of the country significantly.
The corridor will also create a swathe of opportunities for India in the logistics and transportation sector, they said.
The corridor will also provide India with and faster and cheaper transit option, thus significantly boosting trade and exports. Experts believe that it can also be developed as a green corridor enhancing green transition objectives, strengthening standing in the region and allowing companies to participate on an equal footing in infrastructure construction.
The corridor will also secure supply chains, generate jobs and improve trade facilitation and accessibility, they added.
‘Testament to human endeavour, unity’
Prime Minister Narendra Modi termed the corridor as a testament to human endeavour and unity across continents. Taking to X (formerly Twitter), PM Modi said the Economic Corridor promises to be a beacon of cooperation, innovation and shared progress.
“Charting a journey of shared aspirations and dreams, the India-Middle East-Europe Economic Corridor promises to be a beacon of cooperation, innovation and shared progress. As history unfolds, may this corridor be a testament to human endeavour and unity across continents,” PM Modi tweeted.
India, the United States, Saudi Arabia and the European Union on Saturday announced a historic agreement to soon launch a mega India-Middle East-Europe shipping and railway connectivity corridor.
Earlier, PM Modi made the announcement for the ambitious project on the sidelines of the G20 Summit and was flanked by US President Joe Biden, Saudi Arabia Prime Minister Mohammed bin Salman and leaders of the EU.
Enhanced connectivity key priority for India
As per experts, enhanced connectivity with the regions part of the corridor is a key priority for India and is deeply rooted in Indian civilizational history. However, it is also important to ensure that connectivity initiatives are consultative, transparent and participatory with respect for the sovereignty and territorial integrity of all countries.
Principles of financial responsibility and economic viability must be followed to avoid the creation of unsustainable debt burdens to recipients and conforming to ecological and environmental standards, they said.
The MoU will create opportunities for the promotion of trade and economic cooperation between the signatories in the fields of connectivity, logistics and freight infrastructure, clean energy and hydrogen production and energy transmission infrastructure, according to an official statement,
They said the corridor will facilitate and enhance the infrastructure in the logistics and transportation sector and lead to the development of significant capacities in India, thereby enhancing the country’s self-reliance in various sectors.
(With ANI inputs)